Author Question: If a 5 percent change in the price of a good leads to a 10 percent change in the quantity supplied, ... (Read 66 times)

appyboo · **on:** Jun 29, 2018

If a 5 percent change in the price of a good leads to a 10 percent change in the quantity supplied, then the supply of the good is ________ and the elasticity of supply is ________.

A) inelastic; 0.5
B) inelastic; 2.0
C) elastic; 0.5
D) elastic; 2.0

Question 2

In the short run, a change in the nominal exchange rate brings an equivalent change in the real exchange rate.

Indicate whether the statement is true or false